When starting an online store, many business owners often leave payment options as the last thing to consider, not realising that this is where the real obstacles can lurk in, especially in South Africa were only a minority of the population use a credit card, which already reduces an online store’s pool of potential buyers.
While payment gateways like PayU offer card payments as a payment method, there is a large number of the population who don’t have a credit card. There is also a lack of trust with some consumers who may feel unsure about giving their credit card details when shopping online. It’s in this area where you need to build trust.
When setting up your eCommerce business, before you decide on your site’s design, preferred platform or delivery method, it’s important that you analyse your payment options. One of the important questions to ask yourself is whether your purchase system will be easy for your customers to use. And whether it will be the most ideal payment channel to your business.
For instance, when a customer makes use of a credit card as a means of payment, the costs to your business can be unappealingly high. Businesses have to pay transaction fees to their payment service provider, as well as extra fees to the bank which controls their internet merchant account.
Instant EFT payments accommodate everyone
Because many shoppers are not comfortable with giving away their personal details when shopping online, incorporating an instant EFT solution as a payment method can make a huge difference to both your eCommerce business and the online shopper’s experience, alleviating the challenge of trust.
EFT is a well established payment method in South Africa. Customers are familiar with it and therefore trust it as a means of payment. It is therefore an important addition for eCommerce businesses to break the digital barrier in the region.
Furthermore, not only are the fees considerably lower compared to credit card charges, but there is immediate feedback when a transaction is made. This will also help as, should there be insufficient funds in the account, both the shopper and the merchant will know instantly, cutting down on charges resulting from returned transactions.
All that’s required from a customer is their regular username and password, and as a merchant, all you need is a valid bank account. EFT is a payment method which offers the lowest possible fees to the online retailer, so you don’t lose anything by offering this as a payment method. If you don’t want to lose out on a major share of SA shoppers, you can’t afford to leave out instant EFT, such as PayU’s EFT Pro.
- Article created in collaboration with PayU and TechFinancials.co.za